Questions RE: Mortgage and Life Insurance?

[Angelove]

Hello Everyone ~

So, I've finally reached the stage where I'm ready to buy my first house. It's about time at the ripe age o33.  Anyway, I've found the property, had my offer accepted, have my mortgage and rate set, and later this week will sign all the papers.  The thing that remains unknown to me is how do I deal with life and health crisis insurance.  I understand from my banker/broker that I only need fire insurance for the mortgage to go through, however, it'd be crazy to not have these other insurances.  The problem is that I don't know if I can even get them or if so at what sort of rate, now that I'm positive.  I'm Canadian, so this may be harder for you all to answer, but I'm really hoping that someone out there knows the scoop or can help me find out. 

Thanks. J.

[poet]

Congratulations on the upcoming purchase, J.  I can't answer your specific question, largely because I am down here in the U.S.  I can say that, as with the decisions you came to about the downpayment, the rate, the term of the mortgage, the Lender (your bank) requires fire insurance or a basic home policy, but you, as anyone else, need to think about the larger picture.  You need a policy which, from the date you sign the documents until the day you pay off your mortgage, covers you against fire, against flooding, against wind, against anything which might level it.  You need to be sure that if something happened, you will have the proceeds from a policy to replace it as it was.  You need to be sure that you would never be left with a foundation and an existing mortgage, while not having the money to pay it off if you couldn't rebuild it.  Life and disability insurance would be useful because you don't want to have something happen to you ten years into paying on a mortgage, largely interest on a mortgage, and then be unable to make payments and find the house repossessed by the Lender.  Much of the problem is what the insurance company has a right to know so that you can tell them what they ask and not have your policy voided because you lied.  Win

[Nico]

J.
Good for you.  Being poz for many years, I was afraid to commit to buying a house.  Stupid me!  Now many years later, my partner and I are happy we took the plunge.

I am not licensed in Canada so I do not know your specific insurance laws and regulations, etc.  However, if Canada does allow a Poz person to purchase Mortgage Insurance (in the event of death the house will be paid off) then do it.  If you have disability insurance from your employer or if Canada mandates it in your Province this will also come in handy. 

The last is Life Insurance.  In the US, I cannot purchase an individual term life policy (usually ends at age 65) or a whole life policy (ends when you take the dirt nap) due to my status.  So I purchased as much company offered Basic and Optional life insurance that did not require me to go through Medical Underwriting.  In my case that is about $650K US and will take care of my house and leave my partner with a butt load of cash.

So you may need to rely on your company if Canada works the same as the US.

Anyway, just enjoy your new found piece of heaven and again CONGRATS!

Rog

[northernguy]

As a Canadian my experience was the bank required mortgage insurance if the amount you were putting down was below a certain %.  They did blood draws and everything (maybe because we're two men?).  We cancelled it after a couple of years, it was too expensive.  Our feeling is the surviving partner wouldn't want to stay in the house alone, and it has appreciated so much that it could be sold and a nice condo bought with the proceeds.

I did read online that no Canadian insurer offers life insurance to HIV+ folks, not sure how up to date that was.  In the HAART era I wonder if discrimination could be argued.  Can diabetics get life insurance?

[DavidinCA92284]

IMHO it's not useful to get life insurance to cover a mortgage unless your partner is unable to cover the mortgage.  If you don't have a partner, then why worry about it . . . to get the insurance to pay off, you have to be dead.   In my own experience in the U.S. I get offers for disability payments on credit cards after I get VISAs issued to me . . . but since I'm already disabled, can't use it.   Also, after I get accepted for a home loan through regular channels, I get offers for insurance coverage in case of "disability".   I don't believe that someone that is HIV+ can get mortgage insurance or mortgage cancellation because HIV/AIDS is still considered a terminal illness.  But, I suppose one could get a waiver that would pay off if someone died from other causes other than AIDS....for instance accidental death (getting hit by a bus).

[megasept]

Hi, J. Got my home at 34, so you're not "late". IF YOUR'E IN CANADA, THEN DON'T READ WHAT I HAVE TO SAY...This is if you're buying and living down here.

I don't know that you're Canadian matters, but whether you're talking about insuring your home and yourself in US certainly does? These are two separate matters.

Home Ins: PMI (bank gets its interest), fire, and I would suggest checking out flood, earthquake, etc, depending on where you live, of course.

Do you work? Can you work? You can't get decent life insurance once you're POZ, EXCEPT THROUGH AN EMPLOYER. A job could also get you genuine usable health insurance, not the "crisis" type (called catastrophic). Group insurance means you don't apply based on your health, which is a huge advantage. Otherwise, you'll be refused outright, or at least told to wait 6 months for coverage (preexisting condition). After leaving employment you can keep any or all your insurance through COBRA and/or self pay. This stuff doesn't come cheap. My dental and health comes to $602/mo. Eventually you'd have to convert to individual policies. I strongly suggest you keep life insurance, because you can't buy it on the open market. There are lots of people who get all their healthcare through some combination of government programs and private charities (ie Medicaid + APLA), and that works pretty well and doesn't require you have a "pot to piss in." In fact, you pretty much have to be a pauper to qualify.

Which leads me to...Where and how are you getting your healthcare now? You need care and specialists, not just insurance for some future crisis.

I am completely opposed to the US "health system" and favor elimination of the insurers from the picture (replace with single-payer, single-standard, universal care for all). Canada's system is better. Why can't you use your Canadian card here? I watched a friend do this, and he was treated VIP by a fancy hospital.

Feel free to PM me for more details. Congratulations on your new home!    -megasept